Policyholders Protection Act 1975 (repealed) (c. 75)

General scope of the Board’s functions under this Act U.K.

3 Authorised insurance companies. U.K.

(1) The functions of the Board under this Act shall be exercisable in relation to policyholders and others who have been or may be prejudiced in consequence of the inability of insurance companies to meet their liabilities under policies issued or securities given by them only in cases where the insurance companies in question are authorised insurance companies.

(2) An insurance company is an authorised insurance company for the purposes of this Act if it is [F1 authorised under section 3 or 4 of the Insurance Companies Act][F2 1982]. . .

(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F3

to carry on insurance business of any class in [F4 the United Kingdom]

Textual Amendments

F1 Words substituted by Insurance Companies Act 1981 (c. 31, SIF 67), s. 36, Sch. 4 Pt. II para. 25(2)

F2 Word substituted by Insurance Companies Act 1982 (c. 50, SIF 67), s.99(2), Sch. 5 para. 16(a)

F3 Word “or” immediately preceding para. (b) and para. (b) repealed by Insurance Companies Act 1980 (c. 25, SIF 67), s. 4(3), Sch. 5

F4 Words substituted by Insurance Companies Act 1980 (c. 25, SIF 67), s 4(1), Sch. 3 para. 9

Modifications etc. (not altering text)

C1 S. 3(2) extended (1.7.1994) by S.I. 1994/1696, reg. 68, Sch. 8 Pt. I para. 5(1)

Prospective

[F5 3A Authorised and other friendly societies. U.K.

(1) The functions of the Board under this Act shall be exercisable in relation to persons such as are mentioned in section 1(2)(aa) above only in cases where the friendly societies in question are qualifying friendly societies.

(2) Friendly societies are qualifying friendly societies if—

(a) they are authorised friendly societies;

(b) the Board is satisfied that they fall within subsection (3) or (4) below; or

(c) the Board has at any time been so satisfied.

(3) A society falls within this subsection if—

(a) it is required by section 48 of the Friendly Societies Act 1992 to maintain a margin of solvency; and

(b) it possesses the margin of solvency which it is required to maintain.

(4) A society falls within this subsection if—

(a) it is not required by section 48 of the Friendly Societies Act 1992 to maintain a margin of solvency; but

(b) the value of its assets exceeds its liabilities.

(5) It shall be the duty of the Commission to send the Board any abstract or other information required by the Board to enable it to perform the functions conferred on it by this section.]

Textual Amendments

F5 S. 3A inserted (prosp.) by Friendly Societies Act 1992 (c. 40), ss. 97, 126(2), Sch. 17 para.2 (with ss. 7(5), 93(4))

4 Protection confined to United Kingdom policies. U.K.

(1) A policyholder is eligible for the assistance or protection of the Board in accordance with any provision of sections 6 to 16 below only in respect of a policy of insurance which was a United Kingdom policy for the purposes of this Act at the material time for the purposes of the provision in question.

(2) A policy of insurance is a United Kingdom policy for the purposes of this Act at any time when the performance by the insurer of any of his obligations under the contract evidenced by the policy would constitute the carrying on by the insurer of insurance business of any class in the United Kingdom.